Australia mandates payments from Big Tech to news publishers or imposes 2.25% levy

Australia is moving forward with new measures aimed at requiring major technology platforms to financially support journalism, unveiling draft legislation that would compel companies such as Meta, Google, and TikTok to either pay news publishers or face a levy on their local revenues.

Communications Minister Anika Wells stated during a press conference that more people are increasingly accessing news directly through platforms like Facebook, TikTok, and Google, underscoring the rationale behind the proposed changes.

The draft proposal, referred to as the News Bargaining Incentive (NBI), introduces a 2.25% levy on the Australian revenues of these companies if they do not enter into commercial agreements with local media organisations. The structure is designed to encourage partnerships, as the effective rate decreases the more deals companies sign with publishers. If enough agreements are reached, the levy could fall to 1.5%, potentially channelling between A$200 million and A$250 million back into the country’s journalism sector.

Prime Minister Anthony Albanese emphasised the importance of journalists in maintaining an informed society, describing them as essential to Australia’s media landscape and the flow of reliable information to communities.

This initiative represents Australia’s second attempt to require large technology platforms to contribute financially to the news industry. The earlier News Media Bargaining Code, introduced in 2021, required platforms like Google and Meta to negotiate payments with publishers. However, a key limitation allowed companies to avoid payments by removing news content entirely. Meta took this step in 2024, a move that reportedly contributed to widespread layoffs across Australian newsrooms.

The new NBI framework is designed to address that gap by ensuring that companies are subject to the levy regardless of whether they host news content. First announced in December 2024 as a replacement for the previous code, the updated draft legislation now moves the proposal closer to implementation.

Including TikTok is a notable expansion over the earlier framework. At the same time, the draft explicitly excludes artificial intelligence services. Assistant Treasurer Daniel Mulino explained that AI-related issues are currently being examined through separate policy processes, including ongoing work around copyright led by the Attorney-General’s office.

The proposal also arrives amid broader international tensions over digital service taxes. The administration of Donald Trump has consistently opposed such measures targeting U.S.-based technology firms, warning of potential trade consequences, including tariffs, for countries that proceed with similar policies. When asked about possible reactions from the United States, Albanese reaffirmed Australia’s position, stating that decisions would be made based on national interest, reflecting the country’s sovereignty in policymaking. If the legislation is approved, affected companies would be required to comply by July, when the levy would also take effect.

Australia’s approach is part of a broader global effort to address the relationship between technology platforms and news publishers. Countries including Canada, Brazil, and members of the European Union have introduced or explored similar policies, though outcomes have varied. In Canada, legislation introduced in 2023 led Meta to remove news content entirely, while Brazil’s proposal has remained stalled for several years. Within the EU, rules exist, but enforcement differs across member states. Meanwhile, South Africa has taken a different approach by facilitating agreements between regulators and companies like Google, Meta, TikTok, and Microsoft, resulting in funding commitments of roughly $40 million for local journalism over five years.

Responses from major technology companies have been critical of the proposal. Meta’s Vice President of Communications, Andy Stone, described the measure as effectively a digital services tax, arguing that news organisations voluntarily share content on its platforms and that the levy would apply regardless of whether such content is present.

Google also raised objections, citing its long-standing partnerships with new organisations. A company spokesperson highlighted that Google already maintains commercial agreements with more than 90 news businesses and 226 outlets across Australia. While the company is reviewing the draft legislation, it expressed opposition, stating that the proposal overlooks existing agreements, misinterprets changes in the advertising market, and selectively applies obligations while excluding other platforms such as Microsoft, Snapchat, and OpenAI, despite broader shifts in how audiences consume news.